Middle East Tensions Send Brent Crude Soaring Above $104
Brent crude oil prices surged above $104 on Monday, driven by renewed geopolitical tensions in the Middle East. The Brent price rose by 2.49% to around $104.20 at the time of writing.
The recent attack on a major Saudi pipeline on Friday has heightened concerns over potential disruptions to energy supplies, contributing to the increase in oil prices. Saudi Arabia's Ministry of Energy said that the infrastructure was shut down as a precaution after being targeted.
The ongoing security threats and diplomatic tensions have kept a substantial risk premium embedded in Brent prices. The Strait of Hormuz, a crucial route for global oil exports, remains under threat from Iran-backed Houthis, who launched drones on Thursday targeting strategic locations along the Red Sea.